PNB, Bank of Baroda, AU Small Finance Bank shares surge on strong Q2 results

Shares of Punjab National Bank, Bank of Baroda and AU Small Finance Bank jumped up to 4% after releasing strong Q2 business updates. Deposits and advances across the three lenders recorded robust year-on-year growth, lifting investor confidence.

Analysts remain optimistic about loan growth momentum going forward, though they flag potential headwinds. Near-term net interest margins could face pressure due to surplus liquidity in the banking system, which may limit upside in profitability.